Sampath Bank, reported earnings of Rs.19.95 a share or Rs.3.9 billion in earnings for the December quarter (4Q17), a 52.5% increase from a year ago.
The bank, made this bottom line performance amid a 23% year-on-year (YoY) growth in net interest income and 3.91% net interest margin maintained for the year. The bank for the quarter under review recorded a net interest income of Rs.8.6 billion.
Meanwhile, the bank for the full year reported earnings of Rs 64.91 a share or Rs.12.68 billion in earnings, up 34 percent YoY. This is amid a significant increase in the provisions for possible bad loans for both selected individual customers and for the loan portfolio in general (general provisions).
The net interest income for the period jumped 27 percent YoY to Rs.30.3 billion.
The bank with assets of Rs 795 billion, provided new loans worth Rs106 billion, recording an increase of 23% which is about 9% higher than the industry credit growth. The bank on a standalone basis had a loan book of Rs.572 billion. The deposits grew by Rs.116 billion or 23% to Rs 626 billion. The bank in December 2017 announced Rs.12.5 billion rights issue and Rs.7.5 billion convertible debenture issues to beef up its capital in line with the new BASEL III minimum levels coming into full effect from 2019 January.
By December 31, 2017, the bank had a Common Equity Tier I and a Tier I capital adequacy ratio of 10.26 percent while the Tier II capital ratio stood at 14.41 percent.
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